Return of Title IV Funds
If a student completely withdraws from the College and has utilized Federal Title IV Funds (e.g. Federal Pell Grant, Federal Stafford Student Loan, Federal Parent Loan for Undergraduate Students [PLUS]) during the semester in which they withdraw, the College will observe the federally mandated process in determining what, if any amount of money must be returned to the federal program(s).
Students who intend to withdraw from the College must complete the process as outlined in the Student Handbook under the Academic Policies section. In cases where a student has received federal financial assistance during that semester, the FAO will determine what, if any adjustment must be made. This determination will be based on the formula prescribed in the federal regulations for the return of Title IV funds. This determination is made on the basis of the number of calendar days completed in the semester prior to the student’s notification to withdraw, divided by the total number of days in the semester. If the resulting percentage is greater than or equal to 60%, no return of federal funds will take place.
If the percentage is less than 60%, this percentage will be used to determine the portion of Title IV aid that has been “earned”. The remaining amount must be returned in the following order:
- Federal Direct Unsubsidized Stafford Loan
- Federal Direct Subsidized Stafford Loan
- Direct PLUS Loans
- Federal PELL Grant
- Federal SEOG
- Other Title IV Aid
NOTE: Refunds as a result of official withdrawal or leave of absence will be made in accordance with the College’s refund policies.
If the amount of money that must be returned to Title IV programs exceeds that which exists in the student’s account as a result of the College’s refund policy, the student will be notified as to the amount of any grant money that must be repaid. This repayment must take place in order for a student to reestablish eligibility to receive federal funds in the future. Any loan proceeds which must be repaid will become part of the normal repayment procedures for the loan program.